On Sat, 25 Feb 2006 00:10, Ian Cheong wrote:
> A govt economist I once spoke to said that in (unspecified) health
> systems he has looked at, governments seem to contribute about 6% of
> GDP.

Only holds true if you limit your assessment to a small handful of governments 
and ignore the world at large.

Most European governments spend well in excess of 12% (twice the percentage 
your economist mentioned) of their GDP directly on health

All a matter of priorities. Some governments choose to spend more on military 
or subsidizing inefficient industries, others choose to spend more on health 
and education. I know what government I would choose.

At the end of the day, private systems almost invariably cost more some way or 
another because they need to make *profit* and that profit is not spent on 
the purpose = money is siphoned away. That does not hold true in countries 
with abysmal public organisation levels - those with such inefficient 
bureaucrazies that their apparatchik wastes more money than the private 
sector would siphon off profits.

Whether a person pays for health care via tax or via private expenditure is 
the same to that person - every dollar spent is one dollar less they can 
spend. Question is where that person gets the bigger bang for buck.

I conclude that if the Australian government would pull their smelly finger 
out and streamline public administration (get rid of the hopeless state 
system for a start, leave micromanagement to those who actually do the work, 
and maybe deport 90% of the lawyers to Nauru) and embrace modern 
administrative tools (e.g. IT) they could provide a far better bang for buck 
to every Australian in terms of health provision than any private provider 
ever could
Horst
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